Kozhikode: Petrol and diesel rates rose sharply in the state as global oil prices remained firm reaching its highest levels this fiscal. On Saturday, petrol price increased by 24 paise per litre and touched Rs 83.44 in Wayanad and Rs 82.53 per litre in Kozhikode.
Diesel price, on the other hand, increased by a higher margin of 28 paise to Rs 77.14 a litre in Wayanad and Rs 76.34 a litre in Kozhikode.
Oil companies began increasing pump prices of the two petroleum products from last Friday after a nearly two-month-long hiatus in the fuel price revision. The prices increased for five consecutive days before going for a day's pause on Wednesday. It has risen on both days thereafter.
In ten days, petrol price has gone up by 85 paise and diesel rate has risen by Rs 1.49 per litre.
The fuel prices are expected to go up further in coming days.
The benchmark Brent crude has crossed $48 a barrel on the Intercontinental Exchange (ICE), marking the highest rate this year. It has remained over $43 a barrel for most part of November.
Though the retail pricing of petrol and diesel has been deregulated and Oil Marketing Companies (OMCs) were following a daily price revision formula, the same was suspended for almost two months to prevent the volatility in the international oil markets from impacting the fuel prices regularly during the pandemic.
But with crude on the boil again on the news of a successful coronavirus vaccine launch soon, the patience was lost by the OMCs who finally resorted to the price increase to cover for their under recovery on the sale of two petroleum products.
OMCs need almost 40 paise per litre increase in the retail price of petrol and diesel to cover for $ 1 increase in crude. Going by this yardstick, the product prices would have to be increased by up to Rs 2 per litre to cover the under recovery on its sale.
(With inputs from IANS)